Among the top-100 BSE listed companies, 36% of the firms have been unable to allocate the prescribe Corporate Social Responsibility (CSR) expenditure in the third year of the 2% mandate, according to a report.
As per findings in the CSR Outlook Report 2017, compiled by NGOBox, a research platform in the CSR sphere, the percentage of companies failing to spend their CSR budgets has reduced from 44% in FY 15-16, to 36% in FY 16-17. Also, one-third of the top-100 companies spent more than the mandated percentage.
Among, the top-10, half of the companies: Tata Consultancy Services (TCS), Indian Tobacco Company (ITC), ICICI Bank, HDFC and Axis Bank did not spend the prescribed CSR funds. At the top was Reliance Industries with an actual expenditure of 659 crores, having a prescribed amount of 620 crores.
These top-100 companies together combine for 33% of the total number of firms who fall under the CSR mandate. 36 companies (almost one-third), who did not spend the prescribed money, are still unable to figure out their areas of focus.
A few companies who fall under the bracket were left with no option, as implementing partners could not allocate the CSR funds, proving to not have the capacity, the report revealed. Another key finding highlighted is 55% of CSR spending by corporate houses is done through implementing partners.
A total amount of Rs. 6,871 crores on CSR was spent in FY 16-17, compared to Rs. 4,678 crores in FY 14-15. An actual CSR spend of Rs. 6,342 crores in FY 15-16 means there was an 8.34% rise in CSR spending for this financial year.
Sectors such as Education and Skill Development are still receiving the highest amount of funds at 36% and 17% respectively. Hunger & Malnutrition and Environment & Sustainability received increased attention in terms of funds from India Inc. this time as well.
Healthcare received 16% of the total spend and was the third favoured sector for investment, while Women Empowerment was provided with 1.5% of CSR funds.
In terms of CSR funding received by each state, Maharashtra received 16.5% and was followed by Gujarat at 6.9%. Odisha has been receiving attention, as the state received the third highest CSR funds in FY 16-17, climbing five places from FY 15-16.
